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Tag Archives: cash rent

This week’s survey on farmland values had good news for cash renting farmers. For 2017, 50% of respondents said they see up to a $25/acre drop in rents, while another 41% say a $25-$50 decline is likely. No one predicted an increase for 2017.

Faced with declining profits, some Iowa farmers are defaulting on cropland rents — a largely unheard of move given the intense competition for the state’s fertile farmland and a sign that financial pressure and debt are mounting.

Despite calls from university experts to lower cash rents in 2016, a lease auction in Morgan County Thursday brought $390/acre for a 263-acre farm. Meanwhile, a 61-acre parcel in Woodford County sold for $15,200/acre earlier this week.

Cash rents decreased 8% in Illinois and the 7th district for 2015 relative to 2014; this was the largest annual average decrease since 1987, according to the latest Ag Letter from the Chicago Federal Reserve Bank. The report said the large decline so soon was atypical from historical trends.

The Eighth Circuit U.S. Court of Appeals heard oral arguments in a landmark tax case last week that would not only set a precedent for absentee landowners with Conservation Reserve Program contracts, but could potentially redefine tax treatment of cash rents, conservation easements and other types of passive income if allowed to stand, farm managers… read more

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